Brexit Exhaustion Brings A Binary Event And A Long Straddle Option Strategy Into Focus
September 16th, 2019 · No Comments
- Brexit exhaustion led the new PM Boris Johnson to force the issue, but his efforts resulted in a backlash complicating things once again.
- Part of the collateral damage is that the Ulster DUP is no longer necessary to prop up the Johnson government, which has opened up the perspective of a negotiated exit.
- This is far from a done deal though, but markets in general and the pound in particular seem faced with a binary investor event.
- We think a long straddle option strategy is well suited to such a binary event, although further postponement can’t be excluded and is a risk.
Source: Brexit Exhaustion Brings A Binary Event And A Long Straddle Option Strategy Into Focus – Invesco CurrencyShares British Pound Sterling Trust ETF (NYSEARCA:FXB) | Seeking Alpha
Tags: currencies · Economy